It is to the point, showing intelligence (3)
I believe the answer is:
Here is my best explanation:
'intelligence' is the definition.
(wit is a kind of intelligence)
'it is to the point' is the wordplay.
'is to' means one lot of letters go next to another (I've seen this in other clues).
'the point' becomes 'w' (W is an example**).
'it' after 'w' is 'WIT'.
'showing' acts as a link.
(Other definitions for wit that I've seen before include "joker", "Humorist; intelligence", "Form of humour", "Funny person", "Ingenuity; wag", "Maker of clever remarks", "Good sense", "Intelligence; humorist", "form" and "Joker".)